Abstract

Financial systems are typically modeled as state machines that enforce correctness through invariants such as conservation of value and valid state transitions. While these guarantees are necessary, they are often expressed at a purely technical level, detached from the economic behavior they are meant to preserve.

This article examines economic invariants in distributed financial systems. We explore how value flows through system boundaries, how inconsistencies emerge despite technically correct execution, and why preserving economic integrity requires reasoning beyond database correctness and cryptographic guarantees.

Financial systems do not just manage state.…